Well, that decision has to be made based on whether or not the new features are worth the extra cost. Double the storage, double the RAM, much faster processor, better camera with video, much better battery life, proper digital compass using magnetometer...
And that's just what I remember from watching the live keynote speech on Macrumors.com earlier on. Personally, with what it does, I think it'll be worth every penny. As it happens, the iPhone I'm writing this on has developed a hardware problem stopping me syncing and charging from my Mac, so a replacement is in order under warranty. He he.

Just got an android phone (HTC Sapphire), and it does everything the iPhone does, but is open so you'll get loads more apps. It's the only touchscreen phone I've used that didn't make me really angry too (although I've only used the 1st gen iPhone, not the newer one).

well yes its supposed to be 2x faster and what not, but from using my girlfriends iPhone 3G not a single time I thought "damn, I wish the window opened faster". The games did not run with a choppy framerate either.

Playing games on a PC and requiring more RAM/faster CPU is fair enough, but its a bloody phone!

If you are going for a new pay monthly contract for 24 months it doesn't seem too bad as you are looking at twice the capacity (plus other changes) for about £10-£20 more for the initial cost. Plus if you only want 16gig you get all the other new features for less than the old 16gig one. I have been holding off getting one but will now.

Just like most mac stuff it's overpriced for what it really is. How can they justify charging that much for a bloody phone??
I don't care if it can wipe my @rse (iWipe anyone?), at that price it's definitely a nay.

I have the 3G 16gb one and it is awesome i cant wait for the update, come my new contract time (less than 12 months) i will get the 3GS for sure, i am very impressed with the changes and improvments thay have made

Its a conservative shuffle forward rather than a step or jump. I think its a really disappointing upgrade. Cant really see the advantage. Fingers crossed there will be a lot of cheap 3Gs up for grabs on the web or from 02. Other than the camera I didn't see people moaning too much about the hardware and the OS3.0 will solve most of the software/firmware complaints. Very disappointed there's no OLED screen when every one else's high phone seems to be sporting one.
Where's the Nano or the tablet? I was considering an IPhone, I think I'll keep an open mind to others now.
Poor show Cupertino.

At last! My e61 has been trying my patience for a while now with it's "Full battery, no wait, a single phone call and it has turned itself off". Ok, it's just the battery and I do like the keyboard, and the fact that I have TomTom on it, and it does mail really well too... But! It doesn't have a camera and the music player is rubbish. It also has no inbuilt GPS, so I have to keep carrying round the dongle if I want to go somewhere using satnav.

At least this way I can give my iPod to the missus and just carry _one_ device. And such a nice device. Sleek, smooth, shiny. I will never be unable to find a pub in London again. It truly is the gentleman's beer finder.

As you might have guessed, I'll be buying one. In black. It means going to O2, but Vodafone suck in our road anyway, so sod them.

It will be interesting to see how they plan to enforce this. I think the iPhone must be telling them it is tethered during the call set up.

They probably just look at how much data you're using. If you're using tons of data, then they'd look at what you're doing on it, and see if it looks likely to be from a phone or not. It'd be easy enough to tell surely, things like web browser user agent strings would give it away (or maybe there is something in the routing information that does).

They are way too expensive however!! Locked to O2 if you want to do things by the book for the next couple of years at least.

When the battery gives out on your expensive investment, then what do you do?

A Nokia 5800 is a better phone because it's costs far less, takes Micro SD cards, has an FM radio, has a replaceable battery, is available for any network, has a higher res. screen, can forward texts, can cut and paste, works with BBC iplayer, streams live bbc tv, works with youtube, works with Nokia's free Sportstracker and other GPS apps such as Viewranger. Takes any 3.5mm headphone/earphone and has fantastic audio. The only limitation i can see is the limited number of IP radio stations in the realplayer format. The web browser is adequate, but not outstanding.

Nokia are a the biggest manufacturer of mobile phones, they dominate the market because they make solid, reliable products that work. The 5800 is their first touchscreen handset. A total winner!

Or be a fashion victim, have your wallet emptied and buy the limited iPhone!

Is the price drop for the 3G 8G going to be rolled out to the UK also?

not according to the 02 website...

A Nokia 5800 is a better phone

i disagree - the iphone has MUCH better build quality, and feels a much higher quality unit. The touchscreen and useability of the iphone is also in a completely different league to the 5800, which i found to be too clunky (virtually having to physically press down the screen to press buttons...). screen resolution isn't really an issue (and i prefer the less-widescreeness of the iphone compared to the narrow one on the 5800)...

horses for courses, but i defo recommend trying a few out in a couple of shops before committing to anything!!!!!